The Master Builders 2026 survey indicates a steadier flow of work and strong homeowner approval despite a tough market, according to the latest State of the Sector report. The survey draws on responses from members across New Zealand, offering a nationwide snapshot of how the construction sector is coping with current economic pressures.
Work pipeline remains steady
Nearly seven‑in‑ten firms reported that their project pipeline is strong or steady, an improvement from 64% a year earlier. The share describing the pipeline as critically reduced fell to 6% from 11%.
Maintaining a robust pipeline enables builders to keep skilled crews employed year‑round and to schedule bulk purchases of materials, which in turn helps stabilise unit costs.
Ankit Sharma, chief executive of the association, explained that the figures point to an industry that has adjusted rather than waited for a rescue. He said conditions remain difficult, yet members are holding their ground, noting that many have weathered similar cycles before.
Builders who have handled previous downturns, such as the post‑global‑financial‑crisis period, are applying those hard‑won lessons to manage cash flow and retain client confidence today.
Rising construction costs were flagged by 93% of respondents, while 87% still see weaker consumer demand as a concern. He warned that a solid pipeline does not automatically translate into a viable project, adding that customers need certainty about financing, pricing and timing before committing.
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Cost pressures are driven largely by higher import prices for steel and timber, as well as rising wage demands in the trades, prompting firms to adopt more rigorous value‑engineering approaches to keep bids competitive.
Homeowner sentiment stays positive
More than 600 recent buyers or renovators gave a clear endorsement: 91% would recommend building to others, a rise from 88% the previous year. Three‑quarters reported no major delays, and 57% stayed on or under budget.
The respondent pool includes owners of brand‑new homes and those who undertook extensive renovations, ensuring the feedback reflects a broad cross‑section of building experiences.
Sharma said the numbers should reassure anyone thinking of a build. He noted that most are getting through their projects without significant delays, and the overwhelming majority would recommend the experience, emphasizing that the “perfect” time to build rarely exists.
He added that flexible scheduling options, such as phased construction, allow homeowners to adapt to market fluctuations without jeopardising overall project delivery.
Clear communication emerged as a key factor. Builders were the primary source of information for 63% of respondents, highlighting the responsibility of the trade professional to keep clients informed about costs, schedules and any changes.
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Builders who provide regular, written progress updates tend to see higher satisfaction scores, because homeowners can track milestones and anticipate upcoming decisions.
Reducing uncertainty around approvals could improve outcomes. Sixty‑eight percent of firms said consenting delays affected their projects, and homeowners who faced notable setbacks cited permitting as the main cause.
When consent is delayed, the critical path of construction shifts, forcing contractors to reshuffle trades, equipment rentals, and site set‑up dates, which can increase overhead.
In practice, a more proportionate consenting system would let viable plans move forward faster, giving both builders and property owners a clearer picture of start dates, costs and move‑in timelines. Such a system would also reduce the administrative burden that often stalls progress.
A risk‑based tiered assessment could allow low‑impact developments to bypass extensive inspections, while higher‑risk projects receive the scrutiny they need, streamlining overall throughput.
Regulatory bottlenecks remain a focal point for the sector’s resilience. If approvals become more predictable, firms could allocate resources more efficiently, and owners might feel less hesitant to embark on new builds.
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Predictable approval timelines also help lenders model cash‑flow more accurately, which can lower financing costs for homeowners and keep projects financially viable.
Consenting delays hinder progress
While the association supports high standards, it argues that achieving them should not require unnecessary cost or delay. A streamlined process could help turn intentions into completed projects more smoothly, and it would also free up capacity for additional work.
Unnecessary delays inflate overhead expenses, and those added costs are often passed on to the homeowner through higher contract fees or change‑order charges.
Sharma concluded that recent homeowner experiences should give prospective clients confidence to start conversations with a qualified builder, reinforcing the notion that the market, though challenged, is still capable of delivering quality homes. He added that ongoing dialogue between regulators and industry participants will be essential for lasting improvement.
That dialogue is already taking shape through joint workshops and advisory panels where regulator representatives and builder associations collaborate on clearer guidance and faster processing pathways.
